Understanding Zakat on Silver
Zakat is the third pillar of Islam, an obligatory charity placed on the wealth of Muslims to purify it and distribute it to the poor. While Zakat on cash and gold are commonly understood, Zakat on silver holds a very unique and critical place in Islamic Jurisprudence.
The Silver Nisab (612.36 Grams)
The Nisab is the minimum threshold of wealth a Muslim must own for a full lunar year before Zakat becomes obligatory. During the time of Prophet Muhammad ﷺ, the Nisab for silver was set at 200 Dirhams, which modern scholars calculate to be precisely 612.36 grams of pure silver.
Why is the Silver Nisab Important for Cash?
Historically, the value of the gold Nisab (85 grams) and the silver Nisab (612.36 grams) were roughly equal in purchasing power. However, in modern times, the value of silver has dropped significantly compared to gold. Because of this massive disparity, many prominent scholars (especially in the Hanafi school of thought) strongly recommend using the Silver Nisab to calculate Zakat on modern paper currency (cash in bank accounts).
Using the silver standard results in a much lower threshold for Zakat. This means more people will qualify to pay Zakat, which ultimately generates far more charity for the poor and needy in the Muslim community.
How is it Calculated?
If the total weight of your silver jewelry, coins, or bullion equals or exceeds 612.36 grams, you must pay 2.5% of its total market value. Use our calculator above by simply entering your silver's weight and the current live market price of silver per gram in your local currency.